Quant : Algorithm Trading
Auto-System Trading Algorithm
Last updated
Auto-System Trading Algorithm
Last updated
Algorithmic trading is designed by placing orders when they meet several rules which has been calculated by Ladder Finance. It enables to reduce position deployment quickly and respond to market volatility.
Typically, these algorithms identify the market trends. By this trend, the algorithm has been selected. Our team is basically seeking a trend-following principle. This strategy shows a low winning rate with a high return. Depending on the market circumstance, traders are monitoring in real time such as increasing or decreasing the number of positions.
However, if the market is judged to be in a bad shape, the algorithm decides to reduce positions. And then, it will be shifted to grid trading which is useful for flat market. When the algorithm rarely shows a short position, our team normally avoid this position due to tight internal conditions. After a long period of back-testing, our team concluded that one-way trading is more efficient in the market than two-way trading. Besides, algorithm trading may be significantly small by a specific circumstance when the protocol assets are allocated. This is reason for the inherently risk of algorithmic trading.
Also, the position can be closed with a loss by unexpected crisis or emergent news data. For preventing further losses, our traders can be involved in this action.